Next 5 years crucial for Equipment Rental Industry: Rajesh Agarwal, MD, Jindal Infrastructures

New Delhi, 19 Aug 2024 | Nirmesh Singh

Continued focus of government on infrastructure is expected to open plethora of opportunities for the equipment rental industry of India. The sector is going to be driven by PM Narendra Modi’s vision of Viksit Bharat which is to be achieved by 2047 marking 100 years of India’s independence.

Rajesh Agarwal, Managing Director, Jindal Infrastructures Pvt Ltd (JIPL), terms this as positive indication for the growth of equipment rental market.

In an exclusive conversation with The Rental Time, he said, “Next 5 years are very crucial for all the rental companies as there will be surge in demand for various types of equipments in all sectors of infrastructure development”.

He also said, the mission “Viksit Bharat 2047” by Prime Minister Narendra Modi has given a positive uptrend to the equipment rental market for which the rental industry will have to equip itself quite well to cater to the rapidly changing needs of infrastructure sector, both in terms of technological advancements and increasing competition.

Rajesh Agarwal further added, the rental industry has already started changing and the adoption of advanced technologies like telematics, IoT, and GPS tracking in rental equipment is increasing.

“Also, the market is becoming more competitive with the entry of new players and the expansion of existing rental companies. This competition is creating new bench marks for better service quality and competitive pricing”, he underlined.

On the challenges of rental industry, he said, currently, the industry is facing three major issues – equipment utilization and the rates, managing financing and capital requirements, and retention of skilled workforce.

He said, ensuring high utilization rates of rented equipment is crucial as idle equipment represents loss of revenue and increased storage costs, and emphasized the need for implementing advanced fleet management systems to monitor equipment usage and optimizing deployment to increase utilization rates.

Mr Agarwal also expressed his concern about the challenges of purchasing new equipment and at the same time managing cash flow for ongoing operations.

“This can be challenging, especially for the smaller rental companies but implementing strong financial management practices, exploring various leasing options, and building relationships with financial institutions can help in managing capital requirements”, he said.

He also highlighted the importance of hiring and retaining skilled operators and technicians for maintenance and support to ensure smooth operations, and said, “Investing regularly in training and development programs for employees can ensure skilled and knowledgeable workforce”.

When asked about the road map of JIPL for next five years, Mr Agarwal said, our focus will be on expansion of fleet, managing cash flows, finance and retention of employees.

Currently, the company has a fleet of more than 275 equipments and has operations in all parts of the country.
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